Hong Kong-based Samsung Asset Management has announced it is closing four of its leveraged and inverse ETPs which provide exposure to equities listed in South Korea or Japan.
Hong Kong ETP providers were granted permission to launch inverse and leveraged ETPs in March 2016.
The Samsung Kospi 200 Daily (2x) Leveraged Product (7250) provides twice the daily return of the Kospi 200 Index, representing the performance of the 200 largest stocks listed in South Korea.
The Samsung KOSPI 200 Daily (-1x) Inverse Product (7326) provides unleveraged inverse daily exposure to the aforementioned index.
The Samsung TOPIX Daily (2x) Leveraged Product (7255) provides twice the daily return of the TOPIX Index, a leading reference for Japanese equities representing over 1,800 companies listed on the Tokyo Stock Exchange.
The Samsung TOPIX Daily (-1x) Inverse Product (7311) provides unleveraged inverse daily exposure to the TOPIX.
The last trading day for the ETPs will be 31 July 2017 and their proposed termination date will be on or around 29 September 2017.
The de-listings may surprise some investors considering Hong Kong-based asset managers were only given the green light to launch inverse and leveraged products by the city’s regulator in March 2016, and previous research suggested robust demand for these products across Asia (See: Leveraged and inverse ETF use on the rise in Asia).
According to Joanne Siu, associate director of marketing – ETF & Index Team, Samsung AM, the move to delist the ETPs “was a commercial decision to better concentrate on our oil ETF and the HK (HSI & HSCEI) leveraged and inverse ETFs, which have been getting a lot of interest lately.”
The Samsung HSCEI Daily (2x) Leveraged Product (07228) and the Samsung HSCEI Daily (-1x) Inverse Product (07328) provides twice the daily return or the inverse daily return respectively of the Hang Seng China Enterprises Index (HSCEI), which tracks the performance of China enterprises listed in Hong Kong in the form of H shares. Each ETP has an ongoing charges figure of 1.30%.
The Samsung HSI Daily (2x) Leveraged Product (07205) and the Samsung HSI Daily (-1x) Inverse Product (07312) provides twice the daily return or the inverse daily return respectively of the Hang Seng Index (HSI), which tracks the performance of the 50 largest companies listed and domiciled in Hong Kong. Each ETP has an ongoing charges figure of 1.30%.